The two formulas
| You want | Formula | Example at 5% |
|---|---|---|
| Add VAT | price × (1 + rate) | 1,000 × 1.05 = 1,050 |
| Remove VAT | price ÷ (1 + rate) | 1,050 ÷ 1.05 = 1,000 |
The same formulas work for any rate. At Saudi Arabia's 15%, 1,000 becomes 1,150, and 1,150 including VAT is 1,000 before tax.